4. Multi-pericd uncertain demand ((Q,R)-model) A scientic college has an average demand of 50 packages of copy paper per working day. There are 250 working days per year, and the price of one packet is 30 kr. For ordering, the college reckons a cost of 1WD kr. and they use an internal interest rate of 2%. The lead-time for a delivery is 5 days and the demand in the lead-time follows the normal distribution with a standard deviation of 50 packages. If a stockout occurs1 the college reckons a penalty cost of sec kr. per packet for inconvenience. a) The current ordering policy has been to use the EGG-formula to decide the order size and place an order when 8 days demand is left on stock. Find the order size and reorder point when using this policy. b) Calculate the optimal combination of order size and reorder point for this situation. c) Compare the costs of the alternatives found in a and b. How much would the college save annually if improving the ordering policy? Comment the different cost factor when using the two strategies